The Convert Drop-Down List of Options for Sales and Purchases

question 24

Multiple Choice

The Convert drop-down list of options for sales and purchases journals allows you -

• A)to remove a quote so you can change it to an order
• B)to remove an order so you can change it to an invoice
• C)convert orders to quotes before filling them
• D)convert quotes or orders to invoices

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Definitions:

Variable Overhead Rate

the rate at which variable overhead costs are applied to units of production, often used in calculating the total cost of producing a product.

Fixed Manufacturing

Costs associated with manufacturing that remain constant, regardless of the level of production, such as rent for factory premises.

Variable Overhead

Costs that vary with production volume but cannot be traced directly to each unit produced, such as utilities for the manufacturing plant.

Supplies Variance

The difference between the budgeted cost of supplies and the actual cost incurred.